Category Archives: Amazon

Cloud Business Lifts Amazon’s Profit to a Record

Description: Helped by its fast-growing Amazon Web Services business, the company jumped to the most profitable quarter in its nearly 22-year history.

Source: NYTIMES:COM

Date: April 28, 2016

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Amazon often flip-flops between showing profits and losses, depending on how aggressively it decides to plow money into big new business bets. Investors have granted the company much wider leeway to do so than other technology companies of its size often receive, because of its history of delivering outsize growth.

For the first quarter, which ended March 31, Amazon reported net income of $513 million, or $1.07 a share, up from a loss of $57 million, or 12 cents a share, in the same period a year ago.

Revenue at the company rose to $29.13 billion from $22.72 billion a year ago.

Amazon’s share price jumped more than 12 percent in after-hours trading after the results were released. Investors were happy to see the company show profits after the disappointing run of reports from Apple, Google, Microsoft and Intel.

“The fact that they’re profitable is a big deal,” said Christian Magoon, chief executive of Amplify Investments, a fund manager that counts Amazon as a top holding. “It’s more of a big deal after some of the disappointing numbers from Apple and others.”  Read Rest of Story

Questions:
1.  What is making Amazon more profitable now?

2. ” Amazon is the rare technology company of its size to still deliver double-digit revenue growth.”  Do you feel that AWS can keep them profitable going into the future  Why or Why Not?

Amazon And Alibaba Bet The Future On Supply Chain Management: eRetailers Invest Big In Logistics

Description:  The world’s largest retailers are planning to not only grow into the world’s biggest logistics companies, but to completely revolutionize the industry.

Source: Forbes.com

Date: May 31. 2016

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Both Amazon and Alibaba have recently made significant investments to their supply chain capabilities and in the not distant future they will soon handle more shipments than most specialist delivery postal and courier companies.

In effect, these companies are building their own streamlined delivery systems that may replace the more established specialists.

Earlier this month, Amazon signed a new deal to lease more cargo jets, in effect doubling the size of its fleet. This is partly a response to increasing demand (shifted 27% more units in last quarter) but also a part of a grander plan.

The aimfor these internet giants is nothing less than the obliteration of all alternative forms of retail. When it comes to sales, Wal-Mart dwarfs Amazon by a factor of four. Jeff Bezos, Amazon CEO, plan is to undermine these lead by competing for consumer attention in ways that Wal-Mart can never match. That is, by offering a nearly infinite menu of goods, same-day delivery and liberating from the tiresome trip to the busy out-of-town store.    read rest of story

Questions:
1.  How do Amazon and Alibaba plan to revolutionize the logistics industry?

2.  Do you feel these companies will be successful in this strategy?  Why or Why not?

Amazon’s Cloud Business Lifts Its Profit to a Record

Description: Helped by its fast-growing Amazon Web Services business, the company jumped to the most profitable quarter in its nearly 22-year history.

Source: NYTIMES:COM

Date: April 28, 2016

29AMAZON-master768

Amazon often flip-flops between showing profits and losses, depending on how aggressively it decides to plow money into big new business bets. Investors have granted the company much wider leeway to do so than other technology companies of its size often receive, because of its history of delivering outsize growth.

For the first quarter, which ended March 31, Amazon reported net income of $513 million, or $1.07 a share, up from a loss of $57 million, or 12 cents a share, in the same period a year ago.

Revenue at the company rose to $29.13 billion from $22.72 billion a year ago.

Amazon’s share price jumped more than 12 percent in after-hours trading after the results were released. Investors were happy to see the company show profits after the disappointing run of reports from Apple, Google, Microsoft and Intel.

“The fact that they’re profitable is a big deal,” said Christian Magoon, chief executive of Amplify Investments, a fund manager that counts Amazon as a top holding. “It’s more of a big deal after some of the disappointing numbers from Apple and others.”  Read Rest of Story

 

Questions:
1.  What is making Amazon more profitable now?

2. ” Amazon is the rare technology company of its size to still deliver double-digit revenue growth.”  Do you feel that AWS can keep them profitable going into the future  Why or Why Not?

Bearing Down on Data Upstarts

Description:  Nothing concentrates minds at a tech start-up like living in the middle of a price war between Amazon and Google. Just ask executives at companies like Box, Dropbox and Hightail

Source: NYTIMES.com

Date: Aug 24, 2014

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“These guys will drive prices to zero,” said Aaron Levie, co-founder and chief executive of Box. “You do not want to wait for Google or Amazon to keep cutting prices on you. ‘Free’ is not a business model.”

So how do you avoid free? Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide. READ REST OF STORY 

Questions for discussion:

  1. Using Porter’s model for competitive advantage, how do you feel that someone like “Dropbox” will compete in this changing industry? Explain which generic strategy they will pursue.
  2. Do you feel the larger companies like Google or Amazon will drive these smaller one out of business? Why or  Why Not?

Websites on Amazon Web Services

Description:  Learn about how Amazon Web Services (AWS) offers a cloud computing solution for businesses, non-profits, and governmental organizations with a flexible, highly scalable, and low-cost way to deliver their websites and web applications.

Source: AWS Cloud

Date: Sept 4, 2013

 

This short video helps explain the benefits of running your website on Amazon Web Services. You’ll learn about the low-cost, pay only for what you use pricing model and the elastic scalability that helps you match your resources to the demands of your users. You’ll also find out about the flexibility you have to run any software you want and how this can help you get your website to market faster.  READ REST OF STORY 

 

Questions for discussion:

1.  What is AWS (Amazon Web Services and why is it important?

2.  What potential applications do you see for AWS and in what industries will this add the greatest value?

 

Google Elbows Into the Cloud

Description: Google said Tuesday that it was doubling its office space near Seattle, just miles from the campuses of Amazon and Microsoft, and stepping up the hiring of engineers and others who work on cloud technology.

Source: NYTimes.com

Date: March 12, 2013

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It is part of Google’s dive into a business known as cloud services — renting to other businesses access to its enormous data storage and computing power, accessible by the Internet.

In cloud computing, dozens or even thousands of computer servers are joined to create a giant machine capable of handling many tasks at once, from storing data to running Web sites and mobile apps to tackling complicated analytical problems.

Individual software developers, large companies and governments rent these services to run their operations often at a fraction of the cost of buying and managing their own machines.  Read Rest of Story 

 Questions for discussion:

1. Do you feel Google will be able enter this business Cloud market as a late entrant and be successful?  Why or Why Not

2.  Which of Porter’s generic strategies do you feel Google is pursuing in the Cloud market space? What about their competitor’s strategy?